America has turned into a consumption economy, according to veteran stockbroker Peter Schiff, who points out that economies can’t run on consumption because then they become “bubble economies.”
According to Schiff, a vibrant healthy economy needs production “Because you cannot consume what is not first produced.”
“Since our economy is so weak and we’re unable to produce the things that we’re consuming, America relies on strong international economies that are able to produce what we consume,” he said.
“How long will the rest of the world subsidize America’s standard of living?” the economist asked. “How long will other countries prop up a dysfunctional, weakening US economy by supplying it with goods it cannot produce for itself?”
